The RealReal is making a lasting impression on new customers. Expect to see pop-up stores, showing off the online brands unique, luxury consignment merchandise. The six year old company offers up to 90% off gently-used designer items such as purses, shoes, jewelry, clothing and sunglasses for women and men.
Allison Sommer, who serves as director of marketing for The RealReal, recently spoke in Miami at the FutureStores conference. She declared 2018 “the year of the pop-up store”. Pop-up stores are temporary stores that give customers a short-term opportunity to interact with brands that are normally strictly online. Loyal customers are created by those unique shopping experiences, and that type of loyalty carries over to the online shopping cart once the pop-up store event ends.
The RealReal has already experienced the increased revenue from pop-up store marketing. Customers typically spend six times more in stores than when placing an online order. The RealReal witnessed a $2 million profit in 2016 at a New York City pop-up store location. In November 2017, the company opened a SoHo location and dazzled customers through the holiday shopping season. After a pop-up store event ends, the brand loyalty carries over, and that’s a trend that founder and CEO Julie Wainwright would like to expand to cities not familiar with pop-up store experiences.
$50 million in growth funding from the private equity firm Great Hill Partners was acquired by The RealReal in 2017, and the possibility of permanent brick and mortar locations is being considered by the company. One-third of their buyer base is millennial-aged, and many of the brands such as Chanel, Gucci, Birken, and Valentino are roping in new generation loyalists.
Another coveted feature of The RealReal is the convenience of selling gently-used high-end items that people have in their closets. Up to 85% commission is earned, and the company makes it easy to request valuation and transport the merchandise. Potential consignors can either schedule a free in-home pickup in 21 participating cities, order a prepaid shipping consignment kit, or visit one of the luxury consignment valuation locations.
Find out more about The RealReal: https://www.crunchbase.com/organization/the-realreal